UBS lowered the firm’s price target on Lululemon (LULU) to $185 from $240 and keeps a Neutral rating on the shares. Lululemon’s Q2 report indicated its fundamental trends are much worse than previously thought, and as a result, the company is entering a multiyear process of revamping its operating model in order to return to healthy topline growth, the analyst tells investors in a research note. The firm now sees a five-year EPS CAGR of just 3% vs. 6% and previously still see significant downside EPS revision risk.
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Read More on LULU:
- Lululemon downgraded to Perform from Outperform at Oppenheimer
- Lululemon downgraded to In Line from Outperform at Evercore ISI
- Lululemon downgraded to Market Perform from Outperform at Telsey Advisory
- Lululemon price target lowered to $180 from $209 at Barclays
- Lululemon downgraded to Market Perform from Outperform at William Blair